Discussion in 'Stocks' started by macrotrader, May 4, 2012.

  1. A few datapoints

    * Seagate delivered a huge beat on April 17. Earnings per share came in at $2.64, crushing the Zacks Consensus Estimate by 26%.

    * the 2013 avg estimate is now $8-9, highest estimate 12$

    * Seagate has generated $1.3 billion in free cash flow over the last 9 months and has spent $1.2 billion buying back its stock.

    So this company trades at 3-4 forward earnings, is generating tons of free cash, is buying back stock like crazy, pays a dividend. I suppose the perception is that harddrives are dying due to takeover from SSDs. Perhaps it has to do with the Thai floods. Any ideas?